Resources Connections, Inc. Announces 10% Dividend Increase

Staffing Company Hikes Dividend Payout

New York, NY — On Tuesday, Resources Global Professionals, the operating subsidiary of Resources Connection, Inc. (NASDAQ:RECN), announced that its board of directors approved a quarterly cash dividend to $0.11 per share. This represents a 10% increase from its current quarterly payout of $0.10 per share. The dividend will be payable on September 21, 2016 to shareholders of record as of August 24. (Source: “Resources Global Professionals Announces 10% Increase in Quarterly Dividend and Dividend Payment Date,” Resources Global Professionals, August 2, 2016.)

Resources Connection provides consulting and business initiative support services in North America, Europe, and the Asia Pacific through its subsidiary Resources Global Professionals. The company offers finance and accounting services, information management services, and corporate advisory, strategic communications, and restructuring services. Resources Global Professionals was founded in 1996 within a Big Four accounting firm. It now has over 3,200 employees, serving 1,800 clients annually from its 68 practice offices around the world.

Based on Tuesday’s closing price, Resources Global Professionals will have an annual dividend yield of 3.02% after the increase.

This announcement is the latest sign of strength for the professional services company. Resources Connection reported earnings last month and for the three months ended May 28, the company generated $152.5 million in revenue, up 2.5% year-over-year (2.6% under constant currency). Earnings came in at $0.23 per share, a 9.5% improvement from the year-ago period. (Source: “Resources Connection Inc Reports Fourth Quarter and Year-End Results for Fiscal 2016,” Resources Connection Inc, July 14, 2016.)

Region-wise, revenue from the U.S. increased 3.1% year-over-year and 2.8% sequentially. International revenue, on the other hand, remained flat year-over-year but increased 9.2% sequentially.

The company’s business has improved quite a bit in recent years, and shareholders have been handsomely rewarded. Since 2010, RECN stock’s quarterly dividend rate has increased 175% from $0.04 to $0.11 per share.

Dear Reader: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and analysis. We are 100% independent in that we are not affiliated with any bank or brokerage house. Information contained herein, while believed to be correct, is not guaranteed as accurate. Warning: Investing often involves high risks and you can lose a lot of money. Please do not invest with money you cannot afford to lose. The opinions in this content are just that, opinions of the authors. We are a publishing company and the opinions, comments, stories, reports, advertisements and articles we publish are for informational and educational purposes only; nothing herein should be considered personalized investment advice. Before you make any investment, check with your investment professional (advisor). We urge our readers to review the financial statements and prospectus of any company they are interested in. We are not responsible for any damages or losses arising from the use of any information herein. Past performance is not a guarantee of future results. All registered trademarks are the property of their respective owners

Please wait...

Sign up to receive our FREE Income Investors newsletter along with our special offers and get our FREE report:

5 Dividend Stocks to Own Forever

This is an entirely free service. No credit card required. You can opt-out at anytime.